Illinois Climate Pollution Reduction Grants: Stretch Code Adoption Grant Application - Third Round

Illinois Climate Pollution Reduction Grants: Stretch Code Adoption Grant Application - Third Round

In July 2024, Illinois was announced as one of the recipients of an award under the Climate Pollution Reduction Grant program, created by the Inflation Reduction Act. The U.S. Environmental Protection Agency (US EPA) awarded $430,251,378 to the State of Illinois to implement a variety of programs over the five-year grant period (2024-2029). Stretch Code Adoption Grants are one of these programs.

The 2023 Illinois Stretch Energy Code, established under 20 ILCS 3125/55, took effect on January 1, 2025. Illinois developed this stretch code as part of its broader efforts to improve energy efficiency, reduce greenhouse gas emissions, and align with the state’s ambitious climate goals. By adopting a stretch energy code, municipalities have the opportunity to exceed the baseline statewide energy efficiency requirements.

Details

• Awarding Agency: Finance Authority
• CSFA Number: 560-03-3635
• CSFA Popular Name: Stretch Code Adoption Grants
• Funding Opportunity Number: IFA-CPRG-07
• Assistance Listings Number: 66.046
• Announcement Type: Initial Announcement
• Award Type: Competitive
• Total Funding Available: $6,698,352.00
• Expected Number of Awards: 33
• Funding Sources: Federal Or Federal Pass Through
• Capital Grant: No
• Indirect Costs Allowed: Yes
• Posted Date: 2026-01-30

Funding Source Description

In July 2024, Illinois was announced as one of the recipients of an award under the Climate Pollution Reduction Grant program, created by the Inflation Reduction Act. The U.S. Environmental Protection Agency (US EPA) awarded $430,251,378 to the State of Illinois to implement a variety of programs over the five-year grant period (2024-2029). Stretch Code Adoption Grants are one of these programs.

Funding Restrictions

See attached NOFO.

Indirect Cost Description

To charge indirect costs to a grant, the applicant must have an annually negotiated indirect cost rate agreement (NICRA). There are three types of NICRAs:

Federally Negotiated Rate. Organizations that receive direct federal funding, may have an indirect cost rate that was negotiated with the Federal Cognizant Agency. Illinois will accept the federally negotiated rate. The organization must provide a copy of the federally negotiated NICRA.

State Negotiated Rate. The organization may negotiate an indirect cost rate with the State of Illinois if they do not have a Federally Negotiated Rate. If an organization has not previously established an indirect cost rate, an indirect cost rate proposal must be submitted through State of Illinois’ centralized indirect cost rate system no later than three months after receipt of a Notice of State Award (NOSA). If an organization previously established an indirect cost rate, the organization must annually submit a new indirect cost proposal through CARS within six months after the close of the grantee’s fiscal year.

De Minimis Rate. An organization that has never negotiated an indirect cost rate with the Federal Government or the State of Illinois is eligible to elect a de minimis rate of 10% of modified total direct cost (MTDC) . Once established, the De Minimis Rate may be used indefinitely. The State of Illinois must verify the calculation of the MTDC annually in order to accept the De Minimis Rate.

All grantees must complete an indirect cost rate negotiation or elect the De Minimis Rate to claim indirect costs. Indirect costs claimed without a negotiated rate or a De Minimis Rate election on record in the State of Illinois centralized indirect cost rate system may be subject to disallowance.

Restrictions on Indirect Costs

Yes

Citation Governing Indirect Cost Restriction

See attached NOFO

Administrative and National Policy Requirements

See attached NOFO

Reporting

Grantees will be responsible for ensuring all reporting requirements associated with the federal funding are met. This includes providing timely and accurate reporting to the Climate Bank in compliance with all federal and programmatic obligations. The Climate Bank will ensure that reporting processes are adjusted as necessary to meet updated or additional requirements issued by U.S. EPA. Reporting will include, but is not limited to, project financial and activity report, and assistance in developing sample project case studies.

Reporting will include semi-annual reports to assist the Illinois Climate Bank in showing progress on achieving this program’s purpose. These semi-annual progress reports will be due to US EPA within 30 calendar days of the end of the semi-annual reporting period. Consequently, to allow time to compile reports from multiple grantees, reports may be due to the Climate Bank within as few as 3 days of the end of the semi-annual reporting period, which run from October 1 to March 31 and from April 1 to September 30 of each year. Grant recipients will track the impact of stretch code adoption through the metrics identified in Attachment A and as may additionally be requested by IFA/ICB. Grant recipients will also be required to submit quarterly financial reports.

Additional Information

https://illinoisclimatebank.com/financing-programs/local-governments-nonprofits/stretch-building-code-adoption-support/